"His [Schwarzenegger's] claim of "full funding" is also contentious, because his administration has lowered its calculation of what Proposition 98 requires and because he would lower it even more by manipulating taxes on gasoline.
What has that to do with schools? In Wonderland, everything. Proposition 98 is partially keyed to total general revenue. Schwarzenegger would eliminate the sales tax on gasoline and offset that revenue by raising the per-gallon excise tax, which is not part of the Proposition 98 calculus. Schools would thus get $800 million less..."
"...Despite scores of maneuvers and the shells moving back and forth over the little ball, in fact, when you read the governor's budget, he calls for cutting education $2.4 billion," Senate President Pro Tem Darrell Steinberg said."